The Joys and Perils of Property in Thailand

[Guest reader]

From Pattaya Mail

Heiner Moessing from Siam Properties was the guest speaker at the September 27 meeting of the Pattaya City Expats Club (PCEC). His topic was The Joys and Perils of Property in Thailand. Heiner has been in real estate nearly all his life. After graduating at Free University Berlin (MBA) he worked for a in their private customer division where he concentrated on property matters.

Heiner noted that the property market in Pattaya is quite different not only from most western countries, but also from other areas of Thailand. This is due to it being a major tourist destination as well as the choice of many retirees for their home in Thailand. One difference he pointed out was that in Pattaya, one can list properties with many agents at the same time, there is no “exclusive listing” by a single real estate agency. Also, in choosing an agent, one needs to find one that actually “listens to you” on the type of property you are seeking, whether to buy or rent, as some agents are known to ignore your wishes and show you properties that are completely different from what you are looking for.

He then proceeded to explain the advantages and disadvantages of condos units as well as houses. The types of ownership structures necessitated by Thai laws that generally prohibit foreigners from owning land and allowing ownership of up to 49% of units in condominiums. This was followed with pictures of properties as he pointed out areas one needs to consider when buying or building such as ceiling height and type, ventilation, and arrangement.

Heiner concluded with things to consider if you want to purchase property as an investment. For example, he said it would be better to invest say 10 million baht in several small condo units versus one single unit or house. He mentioned current market conditions noting that older condo units will often be larger and less expensive than newer units which tend to be the opposite. However, the newer condominium developments will most likely have more amenities in the common areas than older developments.

[KeepItReal]

Reviving this thread since Ive been trying with the idea of finding a beach facing apartment in Thailand. I heard there is a ton of "ghost properties" due to overbuilding since Covid and that prices have been dropping.  Any insights from those that have spent time in Thailand recently or even purchased recently? 

[mauRICE]

16 minutes ago, KeepItReal said:

Reviving this thread since Ive been trying with the idea of finding a beach facing apartment in Thailand. I heard there is a ton of "ghost properties" due to overbuilding since Covid and that prices have been dropping.  Any insights from those that have spent time in Thailand recently or even purchased recently? 

What do you mean by "ghost properties"? Does it have anything to do with Pattaya being described as the Land of the Living Dead? 🤔 There is a Thai documentary made about it.

[PeterRS]

My neighbours opposite in Bangkok recently purchased a second home and dolled up their existing one to rent. They had been informed by more than one estate agent that while the rental market in Thailand is buoyant just now, the selling market is flat. They rented their flat after just one day.

I wrote some years ago of the two western guys who lived in a very large 210 sq.m. flat next door to mine (it was a double flat). Why they purchased it goodness only knows but it took them three years to sell and they had to lower the price from Bt. 13 million to Bt.9.5. All this time their pot of savings was being reduced. Eventually they moved into a large rented flat (another really stupid move) but come covid they had insufficient cash to pay for their visas. In their 80s they ended up being deported.

[Olddaddy]

Great post

I am considering buying a condo in Pattaya for my holidays and for my eventual retirement 

I want a one bedroom though I doubt I could live in a studio 

Prices seem to have risen dramatically in the last few years 

 

 

 

[mauRICE]

17 minutes ago, Olddaddy said:

...I want a one bedroom though I doubt I could live in a studio...

Then get a one-bedroom. Just make sure it's on a high floor and has a balcony big enough for you to install a trampoline...you know for those boring rainy days when you're stuck at home...

[Olddaddy]

Yes ! 

I dont like that view talay building Opposite Jomtien complex though , looks dreary and depressing 😞😔

Not to mention running across that busy road everyday 

 

 

[KeepItReal]

8 hours ago, PeterRS said:

My neighbours opposite in Bangkok recently purchased a second home and dolled up their existing one to rent. They had been informed by more than one estate agent that while the rental market in Thailand is buoyant just now, the selling market is flat. They rented their flat after just one day.

I wrote some years ago of the two western guys who lived in a very large 210 sq.m. flat next door to mine (it was a double flat). Why they purchased it goodness only knows but it took them three years to sell and they had to lower the price from Bt. 13 million to Bt.9.5. All this time their pot of savings was being reduced. Eventually they moved into a large rented flat (another really stupid move) but come covid they had insufficient cash to pay for their visas. In their 80s they ended up being deported.

Interesting. So apparently the rental market is hot because there are a great number of ghost properties - they were bought but stays empty most of the time and used by visiting owners only.  Many of those are now for sale so there is an oversupply on the sales front. I do worry that many of these new buildings are not the build quality of the earlier generation.

[Keithambrose]

3 hours ago, Olddaddy said:

Yes ! 

I dont like that view talay building Opposite Jomtien complex though , looks dreary and depressing 😞😔

Not to mention running across that busy road everyday 

 

 

'Running'?

[Olddaddy]

4 hours ago, Keithambrose said:

'Running'?

Lol .. unfortunately yes 🤣 🏃‍♂️🏃‍♂️

It's a dangerous road and sadly I remember Barry Kenyon .

 

 

[floridarob]

13 hours ago, mauRICE said:

Then get a one-bedroom. Just make sure it's on a high floor and has a balcony big enough for you to install a trampoline...you know for those boring rainy days when you're stuck at home...

OMG, you're killing me 😝😂🤣

[vinapu]

3 hours ago, floridarob said:

OMG, you're killing me 😝😂🤣

use Olddaddy's trampoline

[PeterRS]

14 hours ago, KeepItReal said:

Interesting. So apparently the rental market is hot because there are a great number of ghost properties - they were bought but stays empty most of the time and used by visiting owners only.  Many of those are now for sale so there is an oversupply on the sales front. I do worry that many of these new buildings are not the build quality of the earlier generation.

I really do not follow that argument. Bangkok properties are generally not ghost properties with one exception I know about. When the Chinese were floooding Thalland, they were permitted by their government to take up to US$50,000 out of the country. Many wished to buy in Bangkok but apartments were generally above that figure, So property developers soon put up large apartment blocks with units of between around 25 and 30 sq. m. usually near the end of MRT and BTS lines. Initially these proved popular, even with couples from Singapore and Hong Kong where housing is so incredibly expensive. The Chinese from the mainland basically wanted to park their cash outside the country. The thinking of South East Asians was they could sell the apartments after ten years and make enough of a profit to finally get on the property ladder in their own cities. I suspect with Thailand now much less popular with Chinese, quite a number of these small units are empty - but that's merely a guess.

I have no idea about the situation in Pattaya.